Many UM and UIM Insurance Policies in Hawaii provide that "uninsured motor vehicle" and "underinsured motor vehicle" may be substituted for each other. An example of a standard Hawaii insuring agreement is: "We will pay damages which a covered person is legally entitled to recover from the owner or operator of an uninsured motor vehicle (or underinsured motor vehicle) because of bodily injury: sustained by a covered person, and caused by the accident." "Covered person" in
uninsured motorist or underinsured motorist insurance policy is usually defined as "covered person as used in this endorsement means: you or any family member, any other person occupying your covered auto, any person for damages that person is entitled to recover because of bodily injury to which this coverage applies sustained by a person described above."
The Supreme Court of Hawaii provided that the definition creates a "two class paradigm" or "covered persons" that are usually involved in a uninsured motorist or Hawaii underinsured motorist motor vehicle insurance policy." Therefore, a person injured in a car accident may be defined as a "covered person" because he or she is a person who is named on the motor vehicle insurance policy or who is a family member of someone who is names in the car insurance policy; or someone else who is "occupying" a "covered automobile".